Supreme Facility Management IPO Opens Today: Check Price Band, GMP And Offer Size

The initial public offering (IPO) of Supreme Facility Management Ltd., an integrated facility management services provider, is set to open for subscription on Wednesday. The NSE SME issue consists entirely of a fresh issuance of 65.79 lakh shares worth Rs 50 crore. Investors looking to bid for shares in the Supreme Facility Management IPO may check these details before deciding:

The subscription window for Supreme Facility Management IPO will open between December 11 and 13. The share allotment will be finalised on December 16. 

Credit of shares into the demat account of successful bidders will be done December 17 along with the refund initiation for the non-allottees.

Shares of Supreme Facility Management Ltd. are proposed to be listed on the NSE SME platform on December 18.

Supreme Facility Management Ltd. has set the price band for this SME issue in the range of Rs 72 to Rs 76. Retail investors can bid in the IPO with a minimum lot size of 1,600 shares, totalling an investment of Rs 1,21,600 for a single application.

The company has appointed Khandwala Securities Ltd. as the sole book-running lead manager for the issue, while Kfin Technologies Ltd. is the registrar for the IPO. Aftertrade Broking Pvt. is the market maker for Supreme Facility Management IPO.

The grey market premium on the Supreme Facility Management IPO stood at Rs 24, representing a premium of 31.58% over the upper price band just before the subscription opened on Dec. 11. According to Investorgain, the estimated listing price of Supreme Facility Management shares is expected to be around Rs 100 if the current trends continue.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Supreme Facility Management: Business And Financials

Supreme Facility Management Ltd. offers integrated facility management services including housekeeping and cleaning, disinfecting and sanitizing, staffing, and corporate food solution services to other businesses. The company's business can be broadly divided into two segments - Integrated Facilities Management, and Support Services. Its portfolio includes soft services like housekeeping and cleaning; and hard services like electrical, plumbing, and maintenance work.

Use of Proceeds

Supreme Facility Management Ltd. aims to use the net proceeds from the IPO to fund its working capital requirement and pursue inorganic growth initiatives. A portion of the funds will also be used for general corporate purposes.

Financials

Supreme Facility Management Ltd. reported a revenue of Rs 99.32 crore with a profit of Rs 2.4 crore in the first quarter of the ongoing financial year. The company had earlier posted a 7.91% increase in its revenue for FY24 at Rs 356.95 crore compared to Rs 330.78 crore in FY23.

The company's profit after tax rose over 33% to Rs 7.41 crore in FY24 from Rs 5.54 crore in the previous fiscal.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.